Chief procurement officers are increasingly treating artificial intelligence as a practical tool for expanding capacity rather than a shortcut to immediate savings, according to Ardent Partners’ AI Rising 2026: The State of Procurement AI report, sponsored by ORO Labs and Fairmarkit. In the report’s latest instalment, 61% of CPOs said they see AI mainly as a productivity and scale enabler, while far fewer described it as a cost-cutting lever, a strategic differentiator or somethin...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
g not yet clearly defined.
That finding matters because it suggests procurement leaders are approaching AI with caution, but also with purpose. Rather than framing the technology as a wholesale reinvention of the function, most appear to be concentrating on operational gains: automating repetitive work, improving decision-making and giving teams the ability to handle more activity without a matching rise in headcount or budget.
The emphasis is on tasks where AI can deliver immediate relief. Data cleansing, spend classification, supplier research, contract review and intake management are among the areas most often seen as suitable for automation or augmentation. In practical terms, that means procurement teams can spend less time on administrative work and more on analysis, stakeholder engagement and sourcing strategy.
The broader market picture points in the same direction. The ORO Labs white paper notes that 58% of procurement organisations are already using or piloting AI, indicating that the sector has moved beyond the most tentative phase of experimentation. Other industry guides and surveys suggest adoption is even further along in some cases, with more than 60% or even 70% of organisations piloting, deploying or scaling AI in procurement. Yet those same reports also highlight a persistent gap between experimentation and enterprise-wide impact.
That tension helps explain why CPOs are not, for now, treating AI chiefly as a direct cost-reduction lever. Savings may follow, but often indirectly, through faster cycle times, better sourcing outcomes and more consistent supplier decisions. The value case is therefore cumulative rather than immediate, and it depends on disciplined use-case selection and measurable operational improvements.
There is also a strategic lesson in how procurement leaders are framing the technology. If AI is first viewed as a way to extend team capacity, the best starting points are likely to be high-volume, rules-based processes where gains can be demonstrated quickly. That approach builds confidence internally and creates the conditions for broader deployment later on.
At the same time, the report suggests this mindset may evolve. As AI capabilities mature, procurement organisations are likely to move beyond narrow productivity gains towards deeper questions about operating models, accountability and the future shape of the function. For now, though, the message from the CPO community is clear: AI is being judged less as a dramatic reinvention and more as a reliable way to make procurement work better, faster and at greater scale.
Source: Noah Wire Services